NEW YORK (TheStreet) --American Airlines Group Inc. was downgraded to "neutral" from "outperform" at Credit Suisse on Wednesday. The firm said it lowered its rating on the airline company based on a valuation call. "We downgrade on a relative view that there is more compelling upside elsewhere in our coverage over the next six to 12 months. Until investors are assured PRASM underperformance isn't going to persist and/or integration risk is retired, we see limited scope for American Airline's [depressed] multiple re-rate," Credit Suisse said. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The firm has a $65 price target on American Airlines stock. Shares of American Airlines are down by 0.71% to $52.32 in pre-market trading this morning. Separately, TheStreet Ratings team rates AMERICAN AIRLINES GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate AMERICAN AIRLINES GROUP INC (AAL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: AAL's very impressive revenue growth greatly exceeded the industry average of 30.1%. Since the same quarter one year prior, revenues leaped by 63.1%. Growth in the company's revenue appears to have helped boost the earnings per share. Powered by its strong earnings growth of 68.42% and other important driving factors, this stock has surged by 78.17% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although AAL had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time. When compared to other companies in the Airlines industry and the overall market, AMERICAN AIRLINES GROUP INC's return on equity is below that of both the industry average and the S&P 500. Net operating cash flow has significantly decreased to -$361.00 million or 875.67% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. The debt-to-equity ratio is very high at 3.44 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, AAL maintains a poor quick ratio of 0.77, which illustrates the inability to avoid short-term cash problems. You can view the full analysis from the report here: AAL Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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